Business Research Methods (10!10!06)

8/8/2019 Business Research Methods (10!10!06)

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Business Research Methods


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The complexity of modern business calls for reliable

knowledge of diverse markets

Managerial experience andjudgment are important

ingredients in decision making

But they should be reinforced and expanded by

objective data from systematic field investigations


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Business Research Methods

It is an analytical approach

it provides management with

vital strategic and tactical information

for decision making


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Research Method is a systematic process of :

Collectingand analyzingdata & presentingthe

relevant findings to a specific situation

Objective

To help management make better decisions

Research is not an end in itself but a means to an end


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Specific situation in the area of research could be :

Range of products

Pricing policy

Distribution strategy

Promotional activities

Identifying reasons for high employee turnover


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Detect symptoms

Define problem

State research

objectives

ExploratoryResearch (optional)

Situational analysis

Stage:1 Defining

the problem

*Secondary

Data Study*Primary

Data Study

Surveys

Observation

Experiments

Stage:2 Planning

the Research Design

Identify

Population to

Be sampled

Determine the

Appropriate

sample size

Select sample

unitsProbability

method

Non Probability

method

Stage:3 Selecting

a sample

Develop

Collection

Method

Pretest

Method

Collect Data

Stage: 4 Collecting

the data

Edit collected

data

Code data

Analyze data

Quantitative

Qualitative

Stage: 5 Analyze

Data

Present methods& findings in

appropriate form

Detailed report

Summary report

Stage: 6:Preparing a

Report

Determine use of report

How report would have beenmore useful

Managements evaluation of

report

Stage:7 Follow up


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Stage:1

It is critical it will decide the nature and direction ofthe entire research activities

This involves definingprecisely the research problem

which is the focus of the survey

Before going into the research an exploratory studyshould be done

Exploratory study will give valuable insight into anorganization and its problems


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Definingthe problem is the crucial first step inthe research process

Formulation of theproblem is often more

essential than its solution

Albert Einstein

A problem well defined is half solved


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Don't confuse symptoms with real problem

There is a difference between symptoms and problem

PAIN ISSYMPTOMOFA BROKENLEG

(PROBLEM)

In marketingfalling sales are symptoms that somemarketing mix element is not working properly


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Sales falling(symptoms) may be due to the following

factors such as:

1. May be price competition has intensified

2. Buyers preference may have changed

Defining the general nature of the problem

provides a direction for the research


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Tasks Involved in defining the problem

Environmental context of the problem

Discussions

with DecisionMaker(s)

Interviews

withExperts

Secondary

DataAnalysis

QualitativeResearch

Step1: Problem Definition

Step2: Approach To The Problem

Management Decision Problem

Research Problem

Step3: Research Design

Objective/

Theoretical

Foundations

Analytical Model:

Verbal, Graphical,

Mathematical

Research

QuestionsHypotheses

Specification

Of information

needed


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S

tage:1 Defining the problem

This diagnostic stage will involve initial

discussions between clients & the researcher

To obtain a clear indication of the research

problem


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DEFININGTHE RESEARCH PROBLEMACTIVE RESEARCH: DEPRATMENTSTORE PROJECT

DM We have seen a decline in the patronage of our store

R How do you know that?

DM Well it is reflected in our sales and market share

R Why do you think that the patronage has declined?

DM Iwish I knew?

R What about competition?

DMI

suspect we are better than competition on some factorsand worse than them on others

R How do the customers view your store?

DM I think most of them view it positively, although we mayhave a weak area or two


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Discussions with

The Decision Maker

Key Managers

Investigation of:

Secondary data

Qualitative Research / Exploratory Research

Will help in defining the problem


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Decision Makers Problem

What should be done to improve the patronage of the

store?

Research problem

Determine the relative strengths and weaknesses of the

store vis a vis competitors with respect to factors that

affect the patronage of the store?


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DEFININGTHE RESEARCH PROBLEM

Decision Makers Problem

1. Should a new product beintroduced?

2. Should advertisingcampaign be changed?

3. Should the price of thebrand be increased?

Research Problem (are specific)

1. To determine the consumerpreferences and purchase

intentions for the proposedproduct

2. To determine theeffectiveness of the currentadvertising campaign

3. To determine the priceelasticity of demand and theimpact on sales and profits ofvarious levels of pricechanges

Distinction between Decision Makers Problem & Research Problem


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The likelihood of

committing either type of

error can be reduced by:

By stating the researchproblem in broadgeneral terms

And identifying itsspecific components

Research Problem

Broad Statement

Specific Components


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Management problem

Was how to respond to a price cut initiated by thecompetitor?

Research problem

1 Decrease price to match it with the competitorsprice

2 Maintain price but increase advertising heavily

3 Decrease the price somewhat without matchingwith the competitors price and increase advertisingmoderately


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Detection of symptoms

Analysis of the situation

Definition of the problem

Statements of research objectives

Defining

the problem

begins withthe detection

of

symptoms

Conduct

ExploratoryResearch

(optional)

Note: Solid line indicates the path the research takes when the problem

definition requires an Exploratory Research

Stage: 1 Defining the problem , results in clear cut Research objectives


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Research can be classified in one of three categories:

1. Exploratory research

2. Descriptive research

3. Causal research


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1. Exploratory research

It has the goal of formulating problemsmore precisely

Eliminating impractical ideas

and forming hypotheses


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2. Descriptive research

It is more rigid than exploratory research

Descriptive research should

1. Define research questions

2. People surveyed

3. and the method of analysis

Prior to beginning data collection


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3. Causal research

It seeks to find cause and effect relationships

between variables

It accomplishes this goal through laboratory and

field experiments


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Stage 2: Planning the Research Design

DataT

ypes andS

ources

1. Secondary Data

Before going through the time and expense of

collectingprimary data

One should check for secondary data that may havebeen previously collected for other purposes

Which can be used in the immediate study


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Secondary Data

Internal SourcesFinancial statementsInventory recordsResearch reportsCustomer records

External sourcesGovernment sources

TradeAssociationsCommercial sources


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Techniques for collection of Primary Data

1. Surveys

2. Observations

3. Experiments


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1 Surveys

Any research effort in which data is gathered

systematically from a sample

Methods of Data Collection

1. Self Administered Questionnaire / Mailed

Questionnaire

2. Face to face Interview

3. Telephone Interview


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2 Observations

The systematically recording of behavior, objects orevents as they are witnessed

Researchers disguised as customers, store employees,

or product demonstrator might observe theconsumers reaction to:

(1) prices, (2) products, (3) package design

The consumer is unaware that he is beingobserved


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Detect symptoms

Define problem

State research

objectives

Exploratory

Research (optional)Situational analysis

Stage:1 Defining

the problem

*Secondary

Data Study*Primary

Data Study

Surveys

Observation

Experiments

Stage:2 Planning

the Research Design

Identify

Population to

Be sampled

Determine the

Appropriate

sample size

Select sample

unitsProbability

method

Non Probability

method

Stage:3 Selecting

a sample

Develop

Collection

Method

Pretest

Method

Collect Data

Stage: 4 Collecting

the data

Edit collected

data

Code data

Analyze data

Quantitative

Qualitative

Stage: 5 Analyze

Data

Present methods

& findings in

appropriate form

Detailed report

Summary report


Report


How report would have been

more useful


report

Stage:7 Follow up


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Stage: 4 Collecting the data

Before the data is collected

Collection method should be debugged

To ensure that instructions and questions are clearly

understood by the respondents


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Detect symptoms

Define problem

State research

objectives

Exploratory

Research (optional)Situational analysis

Stage:1 Defining

the problem

*Secondary

Data Study*Primary

Data Study

Surveys

Observation

Experiments

Stage:2 Planning

the Research Design

Identify

Population to

Be sampled

Determine the

Appropriate

sample size

Select sample

unitsProbability

method

Non Probability

method

Stage:3 Selecting

a sample

Develop

Collection

Method

Pretest

Method

Collect Data

Stage: 4 Collecting

the data

Edit collected

data

Code data

Analyze data

Quantitative

Qualitative

Stage: 5 Analyze

Data

Present methods

& findings in

appropriate form

Detailed report

Summary report


Report


How report would have been

more useful


report

Stage:7 Follow up


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Stage : 5 Analyzing the data

Processing requires entering the data in the computer

Editing Coding Data Analysis


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1. Editing

Means checkingcompleted questionnaires or otherdata

For omissions or other wise unusable responses etc


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2. Coding

Means establishingmeaningful categories for the

responses collected by various means


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3. DataAnalysis

Means statistical and/or qualitative analysis of the

data gathered for the research


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Stage : 6 Drawing conclusions and preparing a report

Management may be interested only in the summaryof the findings

Presenting these clearly

In the form of (1) graphs (2) charts (3) other forms ofart work

Documents

Business Research Methods (10!10!06)